08-11-2014, 03:03 AM
Guided by CEO Mr Nico Po, and Chairman Mr (Get) Timur Pradopo, Pollux Properties has released their much-improved 1H 2015 results.
1. Net Profit Margin of 13.6% resulting in 1H2015 net profit of $2.288mil which far exceeds the FY2014 net profit of $228k.
2. Expects the 2H2015 to be much better since there will be an addition of profit recognition from Mayfair Residences and operation of serviced apartment, Louis Kienne Residences.
3. Full year EPS of 2015 likely to hit $0.85, lowering its P/E ratio to 8.8x.
4. Restruturing is over, Pollux is full swing to recognise profits in the coming quarters on their lucrative profits mostly 100% sold. Pollux has appointed an upcoming property agent powerhouse, SLP Reality / SLP Scotia, to sell their units. With their expertise, I believe there will be sales movement in units.
Left unsold
Pavilion Square (residential) - 2;
Garden Park - 1;
Mayfair Residences - 6
5. Possibly expecting the astute management to look into Indonesia for the next investment property acquistion, due to their in-depth knowledge about Indonesia's hot property market. Mr Nico Po runs a successful and bigger company called Pollux Indonesia that develops iconic buildings such as Chadstone, Amarsvati, World Capital Tower, Warhol Simpang Lima, Semarang Paragon Mall, Marquis de Lafayette and The Pinnacle.
6. Investment properties are stated at book cost less depreciation / impairment losses. Possibly expecting valuation gains if fair market method is adopted.
7. With deep pockets, Mr Nico Po could extend an interest-free loan to Pollux Properties as he did in the past either via direct loan or loan from joint venture. Mr Nico Po also owns Old MacDonald House along Orchard Road, via his company "Tinifia Investment Pte Ltd", sharing the same address as Pollux Properties.
8. Checking with ACRA Biz File, there seem to be a newly incorporated company called "Pollux Holdings Pte Ltd", I am speculating there might be merger & acquisitions around the corner. I wouldn't think Mr Nico Po would get Timur Pradopo just to run a $54mil paid-up capital company. More on Mr Pradopo at http://www.hometeam.sg/multimedia.aspx?m...zHPQVuLRp6. However, my main focus would be on the fundamentals still.
All in all, I am quite happy to buy into Pollux Properties when it was in the restructuring process. Now that restructuring is over, and most marketing expenses has been accounted for, the net profit margin should improve over time. I got a good feel when Mr Nico Po expressed his commitment to put Pollux on a firmer foundation for future growth. The share price should move in tandem as the fundamentals gradually improve.
source:
1. financial results: http://infopub.sgx.com/FileOpen/Pollux_1...eID=323494
2. presentation: http://infopub.sgx.com/FileOpen/Pollux_P...eID=323496
1. Net Profit Margin of 13.6% resulting in 1H2015 net profit of $2.288mil which far exceeds the FY2014 net profit of $228k.
2. Expects the 2H2015 to be much better since there will be an addition of profit recognition from Mayfair Residences and operation of serviced apartment, Louis Kienne Residences.
3. Full year EPS of 2015 likely to hit $0.85, lowering its P/E ratio to 8.8x.
4. Restruturing is over, Pollux is full swing to recognise profits in the coming quarters on their lucrative profits mostly 100% sold. Pollux has appointed an upcoming property agent powerhouse, SLP Reality / SLP Scotia, to sell their units. With their expertise, I believe there will be sales movement in units.
Left unsold
Pavilion Square (residential) - 2;
Garden Park - 1;
Mayfair Residences - 6
5. Possibly expecting the astute management to look into Indonesia for the next investment property acquistion, due to their in-depth knowledge about Indonesia's hot property market. Mr Nico Po runs a successful and bigger company called Pollux Indonesia that develops iconic buildings such as Chadstone, Amarsvati, World Capital Tower, Warhol Simpang Lima, Semarang Paragon Mall, Marquis de Lafayette and The Pinnacle.
6. Investment properties are stated at book cost less depreciation / impairment losses. Possibly expecting valuation gains if fair market method is adopted.
7. With deep pockets, Mr Nico Po could extend an interest-free loan to Pollux Properties as he did in the past either via direct loan or loan from joint venture. Mr Nico Po also owns Old MacDonald House along Orchard Road, via his company "Tinifia Investment Pte Ltd", sharing the same address as Pollux Properties.
8. Checking with ACRA Biz File, there seem to be a newly incorporated company called "Pollux Holdings Pte Ltd", I am speculating there might be merger & acquisitions around the corner. I wouldn't think Mr Nico Po would get Timur Pradopo just to run a $54mil paid-up capital company. More on Mr Pradopo at http://www.hometeam.sg/multimedia.aspx?m...zHPQVuLRp6. However, my main focus would be on the fundamentals still.
All in all, I am quite happy to buy into Pollux Properties when it was in the restructuring process. Now that restructuring is over, and most marketing expenses has been accounted for, the net profit margin should improve over time. I got a good feel when Mr Nico Po expressed his commitment to put Pollux on a firmer foundation for future growth. The share price should move in tandem as the fundamentals gradually improve.
source:
1. financial results: http://infopub.sgx.com/FileOpen/Pollux_1...eID=323494
2. presentation: http://infopub.sgx.com/FileOpen/Pollux_P...eID=323496
